Gold set for second weekly loss on impending US rate hike

$XAUUSD Gold sputters in back-to-back sessions as dollar, stocks climb

Gold sputters in back-to-back sessions as dollar, stocks climb

Buz Investors Gold sputters Gold is trading at $1226.90 per ounce at 10:40 GMT this morning, 0.2% lower from the New York close.

Gold

Buz Investors Gold sputters  Gold is trading at $1226.90 per ounce at 10:40 GMT this morning, 0.2% lower from the New York close. This morning, the precious metal traded at a high of $1232.20 per ounce and a low of $1222.60 per ounce. Yesterday, gold traded 0.88% lower in the New York session and closed at $1229.40 per ounce, after upbeat jobs data in the US boosted expectations of a near-term interest rate hike by the Federal Reserve. Immediate downside, the first support level is seen at $1217.60 per ounce, while on the upside, the first resistance level is at $1241.20 per ounce.




 

 

 Other Stories Buz Traders Follow

Gold sputters

Gold futures fell in back-to-back sessions Friday, leaving the contract on pace to wrap the week little changed, as the dollar and stocks pushed higher.

April gold GCG7, -0.47% fell $9.80, or 0.8%, to $1,225.30 an ounce.

Gold’s drop on Thursday snapped a five-session streak of gains that had lifted prices to their highest level in about 13 weeks. Year to date, gold futures have gained more than 7%.

Gold tracked a higher dollar and a second day of gains for stocks tied to a teased announcement on taxes from President Donald Trump.

“The so-called ‘Trump trade’ staged a forceful comeback after the White House said it will announce the most ambitious tax reform plan since that of Ronald Reagan in the coming weeks,” said Ilya Spivak, currency and gold analyst with Daily FX.

“The U.S. dollar rose alongside Treasury bond yields on hopes that cut in corporate rates—a frequent talking point on the campaign trail—will boost growth and inflation, pushing the Fed into a steep rate hike cycle,” he said. “Predictably enough, gold prices slumped against this backdrop.”



Commodities ( Gold ) ( Silver ) ( Lithium )




Saudi Arabia Oil Demand Growth at 6-Year Low as Economy Sputters

Saudi Arabia Oil Demand Growth at 6-Year Low as Economy Sputters

Saudi Arabia Oil Demand Growth at 6-Year Low as Economy Sputters

Saudi Arabia Oil Demand Growth at 6-Year Low as Economy Sputters

Oil consumption in Saudi Arabia, the world’s biggest crude exporter, is expanding at the slowest pace in at least six years as low energy prices hurt economic growth. The kingdom’s demand for oil increased by an average of 24,000 barrels a day in the first five months of 2016, the slowest growth rate for that period since at least 2010, the first year for which data are available from the Joint Organisations Data Initiative in Riyadh. The International Energy Agency is now looking for a drop in demand in Saudi Arabia for all of 2016, after forecasting an increase earlier this year. Consumption of gasoline, kerosene and other
300x250 new sheriff en 08.10.2014
“If the oil slump continues into next year and governments are not in the position to use counter-cyclical fiscal measures to support the economy, we aren’t going to see a huge contribution to oil-consumption growth from the region,” Edward Bell, a commodities analyst at Dubai-based lender Emirates NBD PJSC, said in an interview.

Saudi Arabia has boosted output for years to sustain export income while also satisfying domestic demand. The kingdom’s consumption spikes between June and September when air-conditioning use peaks. Demand for refined fuels such as gasoline has doubled since 2003, according to JODI. Saudi Arabia, the United Arab Emirates, Qatar, Oman and Bahrain have reduced or eliminated fuel subsidies over the past year to limit government spending because of low oil prices. Brent crude, an international benchmark, has dropped 20 percent in the past year and traded at $42.46 a barrel on Friday compared with over $100 a barrel as recently as in 2014.

Gasoline demand in Oman grew 1 percent during the first four months of this year, far below the annual average growth rate of 9.6 percent over the past decade, according to BMI. “The slowing consumption in Oman causes concern that other countries that have enacted or plan to roll out subsidy reforms might see a greater impact than first anticipated,” it said in the report last week.

… (full story)